Summary
Sempra Energy's (SRE) third-quarter 2021 report highlights a significant net loss attributable to common shares, largely driven by a substantial charge related to the Aliso Canyon natural gas storage facility litigation and regulatory matters. This impacted the Southern California Gas Company (SoCalGas) segment the most, leading to a substantial increase in losses for that subsidiary. Despite the overall net loss, the report also shows positive contributions from SDG&E and Sempra's international operations in Mexico and LNG businesses, although these were not enough to offset the large negative impact from Aliso Canyon. Operationally, Sempra saw growth in its energy-related businesses, particularly in Mexico with new terminals coming online and continued development in its LNG export projects. However, the company is facing regulatory headwinds in Mexico that could impact future operations. The company is managing its liquidity effectively through existing credit facilities and expects to meet its future cash requirements. Investors should pay close attention to the ongoing resolution of the Aliso Canyon litigation and the regulatory developments in Mexico.
Financial Highlights
45 data points| Revenue | $3.01B |
| Interest Expense | $259.00M |
| Net Income | -$648.00M |
| EPS (Basic) | $-1.01 |
| EPS (Diluted) | $-1.01 |
| Shares Outstanding (Basic) | 638.29M |
| Shares Outstanding (Diluted) | 638.29M |
Key Highlights
- 1Sempra reported a net loss of $648 million, or $2.03 per diluted share, for the three months ended September 30, 2021, a significant decrease from the net income of $351 million, or $1.21 per diluted share, in the same period of 2020.
- 2The Aliso Canyon natural gas storage facility litigation and regulatory matters resulted in a substantial charge of $1.571 billion for SoCalGas in the third quarter of 2021, significantly impacting the consolidated results.
- 3SDG&E's earnings increased by 15% year-over-year in the third quarter, driven by higher base operating margin and a favorable resolution of regulatory matters, partially offset by higher income tax expense.
- 4Sempra Mexico's earnings increased substantially due to favorable foreign currency effects, new terminal operations, and the start of commercial operations at the Veracruz terminal.
- 5Sempra LNG's equity earnings from Cameron LNG JV increased due to the project achieving full commercial operations, though overall segment earnings decreased due to lower earnings from marketing operations.
- 6Sempra's financial position remains supported by strong liquidity, with available unused credit facilities totaling $6.312 billion for Sempra, $1.5 billion for SDG&E, and $750 million for SoCalGas at September 30, 2021.
- 7The company continues to manage its capital structure and debt, with plans to redeem $2.35 billion of senior unsecured notes in December 2021.